Skip to main content

Variation in Health Care Spending Target Decision Making, Not Geography (2013) / Chapter Skim
Currently Skimming:

Appendix F: Harvard Market Variables Memorandum
Pages 147-150

The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.


From page 147...
... In order to calculate the national mean payment per procedure, claim-day records were calculated by summing payments across all records with the same Enrollee ID, service date and procedure code. Capitated claims and non-capitated claims with zero-dollar spending are excluded when calculating the national standard price.
Read the entire page →
From page 148...
... This will be our unit of quantity, and it will be used to construct the market baskets and when determining the price index. The Price Index Each procedure in the market basket is assigned a weight equal to its proportion of total market basket spending (weights sum to 1)
Read the entire page →
From page 149...
... We will then regress the fixed effects from the individual level regressions on the market level variables in order to assess relationship between market variables and geographic variation. For hospital service area (HSA)
Read the entire page →
From page 150...
... Empirical Approach The market-level file was merged by geographic unit to a file containing estimates of spending, quantity, input-price adjusted spending, and quality derived from regressions (i.e., a file similar to the Subcontractor's Spreadsheet)
Read the entire page →

Key Terms

  • level variables
  • market variables
  • procedure code
  • standard price
  • harvard market

  • national standard
  • national mean
  • mean payment
  • fixed effects
  • market basket

  • level regressions
  • individual level
  • price index
  • practice expense
  • hrr level

  • capitated claims
  • weight equal
  • relate fixed
  • analysis methodology
  • technical components

  • paid separately
  • maintenance organization
  • imputed values
  • variables memo
  • cost index

  • claims based
  • assign market
  • proposed using
  • collapse outpatient
  • outpatient services


    • This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
    More information on Chapter Skim is available.